Profile: Allied Defense Group Inc, The (ADG)

The Allied Defense Group, Inc. (Allied), incorporated in 1961, is a multinational defense business focused on the manufacture and sale of ammunition and ammunition related products for use by the United States and foreign governments. Allied’s strategic business is conducted by its two wholly owned subsidiaries: MECAR S.A. (Mecar) and MECAR USA, Inc. (Mecar USA). Mecar develops and manufactures ammunition and has some smaller portion of its revenue based on service type activities, such as selling ammunition manufactured by other parties, consulting on the development of manufacturing facilities, and providing sales representation to weapon systems manufacturers. In the fourth quarter of 2008, the Company committed to a formal plan to divest the last remaining business in the ES segment, News/Sports Microwave Rental, Inc. (NSM).

Mecar

Mecar designs, develops, manufactures and sells ammunition and ammunition related products for military use. Substantially all of Mecar’s revenues are derived from the sale of ammunition. Mecar also provides system integration services pursuant to which it purchases and resells weapon systems, ammunition manufactured by others or consulting services to governments looking to develop their own manufacturing capabilities in types of ammunition not manufactured by Mecar. Mecar’s manufactured products consist of a variety of ammunition and grenades in the medium caliber, artillery, anti-tank and anti-material categories.

Mecar develops and produces a family of 90 millimeter (mm) ammunition that includes Armor Piercing Fin Stabilized Discarding Sabot (APFSDS), High Explosive (HE), High Explosive Anti-Tank (HEAT), Smoke (SMK) and High Explosive Squash Head (HESH) rounds. This tank ammunition is for the COCKERILL Mk II and III, ENGESA EC-90, the DEFA F1 and the CN 90 F3 & F4 guns. The 90mm MKVIII KENERGA Weapon System has been jointly developed by Cockerill Mechanical Systems (CMI) and Mecar to provide the light armored vehicle (LAV) with anti-tank punch similar to that of tanks equipped with 105mm guns. The ammunition products include the APFSDS, HESH and SMK versions with their corresponding training rounds.

Mecar produces a range of 105mm tank ammunition. This range includes the APFSDS, HEAT, HESH and SMK, with their corresponding training rounds. Mecar has entered into a strategic alliance to produce a 120mm HEP round for the 120mm smooth-bore tank gun. The 120mm family is ammunition for standard field mortars and for the turreted mortar systems, such as the Patria NEMO and the BAE Land Systems AMS. This system is capable of direct as well as indirect fire. The 25mm APFSDS-T ammunition round is Mecar’s entry into the medium caliber arena. In addition, Mecar has produced 155mm HE, SMK(WP) and Illuminating rounds for various customers. Mecar manufactures HE, CAN, HESH and HESH-PRAC ammunition for the 76mm L23 guns, which are in service with armored vehicles in several countries in Europe, South America, Africa and the Far East.

Mecar USA

Mecar USA purchases and resells ammunition and ammunition related products manufactured by others for the benefit of the United States Government and foreign governments. Mecar USA has manufacturing contracts from the United States Government and others for ammunition and pyrotechnics devices. NSM develops microwave surveillance systems used in law enforcement, port security, border security, airport security, high-end commercial security, citywide surveillance applications and defense applications. NSM’s systems and products include cameras, command/control systems, video concealments, intelligent software, microwave link solutions, radars, and other sensors. NSM offers fixed observation/transmit surveillance installations in addition to mobile command centers and airborne camera/tracking/transmit packages.